Suppose a stock had an initial price of 71 per share paid a


1. Magdolin's portfolio has an expected return of 17% and a beta of 1.3. Mehakpreet's portfolio has an expected rate of return of 12% and a beta of 0.9. The risk-free rate is 3% and the expected rate of return on the market is 12%. According to the Jensen's measure,

A) Magdolin has the better portfolio.

B) Mehakpreet has the better portfolio.

C) the portfolios are equally desirable.

D) the answer depends on Magdolin 's and Mehakpreet 's risk tolerance.

2. Suppose a stock had an initial price of $71 per share, paid a dividend of $1.1 per share during the year, and had an ending share price of $83. Compute the percentage total return.

A. 18.45

B. 15.78

C. 23.66

D. 19.37

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Financial Management: Suppose a stock had an initial price of 71 per share paid a
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